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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (35578)	12/21/1999 12:48:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 99985

<<I am just trying to entertain the idea that it is something that is less obvious. >> It is possible that - due to the repealing of Glass Segall (sp) act, there are unexpected dislocations in the banking sector - especially the reserves. Why wouldn't they, when you have extended your margin to the limit, only a slight change in your equity will get you a margin call. May be the Feds are addressing such issues under the cover. IDKJS about bonds, banks, repos, etc. etc. I am just speculating. Edit: Then again, if that is the case, the most prudent thing to do would be to rise the rates Y2K or not.

To: Jorj X Mckie who wrote (35578)	12/21/1999 1:02:00 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 99985

I was being fecicious when I said the market looked sick because there were less stocks up over 100% etc. The market has had weak internals for a long time now and the recent weakness in many issues actually has me closer to neutral than I have been for weeks. I actually have more long play possibilities than shorts right now. The only reason I am flat today is the FOMC meeting. I agree abot teh multitude of Os in P&F charts but I show many of these at probable reversal areas using other charting techniques. Of course if the FZOMC meeitng hurts too many of these, I would get double bottom breaks on many of my P&F charts and many of my 3 line charts would also signal short. I have a over bought on the QQQ but I still show upside room on the DOW, SPX and OEX and have many of the over sold sectors primed for reversals if the FOMC decides to hyper inflate the bubble further. Note the bond is threatening to go below 6.4. If it can make it back below 6.37, I would expect a stronger recovery before the more important market top later down the road and one last chance to scalp some quick and selective long trades. Don't get me wrong, this market is lousy in breadth and numerous other internals. I just think if the street proves right and the Fed does nothing today AND the Bonds reaction isn't a mass sell off driving rates up, then we could head for Favor's domed house and a final short squeeze of epic proportions. Good Luck, Lee